DESCRIPTION: The U.S. market for solar power is expected to triple from its 2004 activity of $4 billion to $12 billion by 2012. Acro Energy Technologies is focused on the consolidation and growth of renewable energy companies, initially in the United States solar market. Acro has initiated its acquisition campaign in the solar integrator market through its recent addition of Acro Electric, Inc., the 8th largest residential solar integrator in California. Also, it has closed an asset purchase agreement with Light Energy Systems in Concord, California. Acro continues to actively evaluate suitable acquisition candidates across North America and Canada.
Listen to Jay Taylor interview CEO Harry Flemming (7/8/10)
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Acro is a really interesting story in the solar space; they're one of the biggest integrators of solar systems in California. And they don't have any of the sort of principal risks typical with an alternative energy play. They're not buying and building the solar farms. They are operating at the install level, and they're bringing scale to that. . .Acro buys equipment at wholesale, gathers the equipment and sends it to the site. The installer shows up and puts it together without wasting any time; it's an efficient business model. And they're buying electrical contractors who don't know anything about solar. They're teaching them the solar part of the game and bringing them the business. . .I think they will break even this quarter, showing traction in their model. They've gone from losing money to break even very quickly and are seeing a lot of demand in California. They made some key acquisitions. . .it's a really interesting story."
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Jay Taylor, J.Taylor's Gold, Energy & Tech Stocks
(07/09/10)
"Not only is the growth of revenues and earnings encouraging, but the business model employed by Acro makes it a no brainer for every homeowner to have its units installed. If a homeowner has sufficient savings to fund the purchase and installation of a unit on his own home, he can save a very substantial amount from his monthly electricity bill. If a homeowner lacks the capital to fund purchase and installation of the unit himself, he can have it funded by the local utility company and in so doing still save a meaningful amount from his electricity expense each month. And because this is funded by the private utility company, no need to worry about the state of California's dire financial condition as a possible impediment to future funding of these units. Acro Energy Technologies Corp. has completed the second quarter ending June 30, 2010, with estimated net income of between $200,000 and $300,000 on gross revenues of $5.4M."
The Energy Report Interview with Peter Cox (05/25/10)
"I think Acro has a relatively good position in California. . .the solar installation business will be very interesting, as more and more states begin to introduce solar PV programs. California has the California Solar Initiative, which aims to install about 1,700 million MW by 2016. This support program enables residential homeowners and commercial businesses to install solar PV on their roofs by providing a subsidy toward the installation."
View Entire Article: Peter Cox: Green Energy Finding Its Legs
The Energy Report Interview with Victor Goncalves (02/04/10)
TER: I'd like to move onto rare earths in a minute, but have another question about solar. Any companies in that arena that you think are well-positioned?
VG: Yes, Acro Energy Technologies is one. In the solar space the part that isn't really talked about very much is installation. After all, they have to put these things in and it's not exactly like trying to change oil in a car; there's a lot more to it.
The process is quite complicated in the sense that you've got the panels, you've got your generator station, you've got your capacitors, you've got all these things and you need a group that can do this to scale. Acro has really been trying to become that "go-to" installer and become more of a consolidator to get that scale. It's really one-stop shopping for the potential end user.
So I think Acro is going to be quite impressive. Exactly when, I don't know, but it's something I'm watching at the moment.
Jay Taylor, J.Taylor's Gold, Energy & Tech Stocks
(12/23/09)
"I talked with Marty Spake, the CFO of Acro Energy Technologies Corp. on Friday, December 18, 2009. Marty gave me an overview of the company and its prospects going forward, and they are indeed very bright. . .
. . .the real breakthrough for this business has come from funding provided by a company named Sun Run. This is a private electric utility company. Sun Run funds the solar installation, and, in exchange, homeowners buy their electricity from Sun Run. The economics of Sun Run are enhanced by tax breaks given to partnership investors similar to those enjoyed in the oil and gas exploration business.
Based on what we can see at the moment, Acro appears to be a very undervalued stock. . .To the extent it can increase per-share earnings and cash flows through acquisition, the upside would appear to be even greater.
What is the upside for this company? Currently with the stock selling at C$0.26, and with 27.5 million shares outstanding, it has a market cap of approximately US$6.75 million. Its projected EBITDA of C$6.6 million, or about US$6.2 million, means the stock is currently selling at slightly over 1 times projected cash flow for 2011, from organic growth alone.
We think a modest multiple of 5 times could very easily be in order, which would take the stock upward to $1.25 per share. A much more aggressive multiple and per-share price could be assigned by the market, depending on how rapidly the company grows and depending on how much dilution.
We believe the management of this company is capable of executing its organic business plan and very possibly much more than that, given likely acquisitions. The bottom line is this. At least given the present scenario, homeowners have nothing to lose by signing up with Sun Run, because they reduce their electricity costs into the future without having to lay out any funding up front. In California, the average homeowner saves about 10%, or $15, on his monthly bill of about $150. When times are tough and a large number of folks in California are having a tough time making their mortgage payments, any additional cash flow will be greatly coveted. An aggressive marketing program should help Acro make its goals for 2010, and if that happens, we would expect this company's shares should rise significantly next year."
Listen to Jay Taylor interview CEO Harry Flemming (7/8/10)
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